Presentation on theme: "Military Procurement – Update"— Presentation transcript:
1Military Procurement – Update Cathy SabistonDG, Defence and Major Projects SectorChristopher BoyleSenior Director, Marine Sector
2Overview Management of Major Projects and other defence projects Major Clients:National DefenceCanadian Commercial CorporationRoyal Canadian Mounted PoliceTransport CanadaCanadian Coast GuardCanadian Security Intelligence ServiceCommunications Security EstablishmentCorrectional Services CanadaCanadian Border Services AgencyInvolvement in initiatives to improve military procurement
3Armoured Vehicles Projects Force Mobility Enhancement ProjectConvert up to 18 Leopard 2 A4 tank chassis into Armoured Engineer Vehicles (AEVs).Light Armoured Vehicle (LAV) III Upgrade Project Upgrade and improve the protection, mobility and firepower effects of 550 in-service LAV III vehiclesIn the last five years :355 contracts per yearAverage annual business value : $1.7B
4Aerospace Equipment Directorate Support contracts for fleet of aircraft (Hercules, Sea King, CF18, Cormorant, Challenger, Aurora and others)Aircraft and aircraft systems procurement - Civilian and MilitaryNorth Warning SystemSurveillance, identification, control and warning for the aerospace defence of Canada and the United States.In the last five years :1536 contracts per yearAverage annual business value : $1B
5Electronics, Munitions and Tactical Systems Procurement Munitions (ammunition and weapons), including laser-guided bombs, torpedoes and rocketsDefence electronics, simulation systems, land tactical command, control and communications systemsLand intelligence, surveillance, target acquisition and reconnaissance systems including radars and UAVsIn the last five years :1022 contracts per yearAverage annual business value : $1.5B
6Major Projects - LandMSVS (Medium Support Vehicle System) Procurement of new medium-sized logistics trucks for the Canadian Forces ($1.58 B)TAPV (Tactical Armoured Patrol Vehicle) Acquisition of 500 well-protected and mobile, armoured wheeled combat vehicles ($900M)CCV (Close Combat Vehicle)Acquisition of 108 new, highly-protected and mobile fleet of armoured fighting vehicles for use in medium to high threat operations. ($3.6B)
7Major Projects - Air Maritime Helicopter Project Acquisition of 28 fully integrated helicopters CH-148 Cyclone from Sikorsky and In-service support to 2028 ($5.3B)Medium-to Heavy-Lift Helicopter ProjectAcquisition of 15 MHLH aircraft (Chinook CH-147 “F” model) from Boeing and In-ServiceSupport (ISS) for 20 years (project value $4.7 B)Tactical and operational training systemsProcure, and maintain for 20 years, courseware and training devicesfor the aircrew operational training capability in support of the CC-130J and CH-147F fleets ($600M)Airlift Capability Project - Tactical (ACP-T)Acquisition of 17 Hercules C-130J from Lockheed Martin and 20-year ISS
8Fixed-Wing Search and Rescue Aircraft Replacement Replacement of current FWSAR aircraft.The FWSAR project is in Definition Phase(Development of RFP).Active engagement with industryA draft RFP is expected to be released in late summer 2013, with the final RFP to be released in early 2014.Estimated value: $3.8B for acquisition and In-service Support for period of 20years
9CCG Helicopter Replacement 12 to 20 light lift helicopters4 to 8 medium lift helicopters2 polar helicoptersSimulatorsProject Value: $483 MSmart Procurement (including industry engagement, governance and third party involvement
10North Warning SystemRenewal of the North Warning System (NWS) Contract.Project Value: $930MCertain % of the firmcontract price must befor Inuit employmentunder the ComprehensiveLand Claim Agreement.
11Integrated Soldier System Project Acquire 6,624 IntegratedSoldier Suites, as well as in-service support and spare partsProject Value: $490MRFP is active andcloses 1 Aug. 2013
12Marine Sector Line of business description The Marine Sector is responsible for theimplementation of the National Shipbuilding ProcurementStrategy and for federal fleet shipbuilding and supportprocurement projects.Number of Employees79 (in NCR, Halifax & Victoria)Interface with PWGSC Regional OfficesMajor ClientsDepartment of National Defence, Canadian CoastGuard1212
13Halifax Class Modernization/ Frigate Life Extension (FELEX) Mid-life modernization and refit of the 12 HALIFAX Class frigates valued at $2.7BTwo Multi-ship refit contracts with Irving Shipbuilding Inc. and Victoria Shipyards Ltd.Combat Systems Integrator (CSI) contract with Lockheed Martin CanadaTo date a total of six ships are in various stages of their refit and modernization
14Canadian Surface Combatant Objective is to acquire up to 15 ships to replace Canada’s existing destroyers and frigatesHighly complex and challenging requirement (complexity level 4)Currently in Definition Phase 1 - ship design activities and refine cost estimates/timelinesIndustry Engagement is underway and will inform the:Procurement Approach for the design of fully integrated combat shipsTechnical RequirementThe Canadian Surface Combatant will be constructed at Irving Shipbuilding Inc., the shipyard selected for the combat package under the NSPS
15Arctic/Offshore Patrol Ship (AOPS) First project in Combat Package with IrvingShipbuilding Inc.Project to procure 6-8 shipsDefinition Contract awarded March 201330 month effortDesign maturationBuild preparationBuild Contract planned for Spring/Summer 2015Ships to be built in new shipyard infrastructureFirst delivery in 2018Last delivery 2023/2024
16Joint Support Ship (JSS) Announced in July 2010, to acquire two support ships to replace the Navy’s current Auxiliary Oiler Replenishment vessels, with the option to procure a third with a budget of $2.6 Billion (taxes included)Part of NSPS Non-Combat package to be built at Vancouver Shipyards Co. Ltd. (Seaspan)Military Off The Shelf (MOTS) Design selected on June 2, 2013JSS/Polar Sequencing Decision planned for Fall 2013JSS MOTS Design Developer: ThyssenKrupp Marine Systems Canada
17Mid-Shore Patrol Vessel (MSPV) Competitive Contract for 9 MSPV is issued to Irving Shipbuilding of Halifax, in August 2009, with an option for 3 additional Vessels.43 metre vessels that will operate up to 120 nautical miles offshore for up to 14 days. Operations will include maritime security and conservation and protection.Four vessels have been delivered up to now, between July 2012 and May Three vessels are currently in operation in the Great Lakes Area.The Five last vessels are currently under constructionLast delivery expected in Fall 2014
18Offshore Fisheries Science Vessel 3 OFSV will replace 4 existing vessels and will conduct fishing and acoustic surveys of fish and invertebrates in the Northern Atlantic and Pacific Oceans and monitor changes in marine ecosystems.Vessels will be 55 metres length overall with the ability to support a complement of 34 persons for 31 days without the need for re-provisioning with food or fuel.Design completed in January 2012 under a competitively awarded contract with RALion.Build Contract is part of the Non-Combat Package of NSPS with Vancouver Shipyard Co. Ltd. .A construction Engineering Contract was awarded to the shipyard in February 2013, to prepare the production drawingsNegotiations for ship-construction contract in process with the shipyard.
19Polar IcebreakerOne Polar Icebreaker was announced in Budget 2008 to become in service as the CCGS Louis St. Laurent, which will be decommissioned in 2017.The design contract was awarded to STX Canada Marine, Vancouver, BC, on November 17, 2011, following a competitive process.The Build Contract will be directed to Vancouver Shipyard Co. Ltd. as part of the Non-Combat Package under NSPS.The design is progressing. Ice Model Testing has been completed in St-John’sDesign contract anticipated to becompleted by December 2013.Discussions already in process withVancouver Shipyard for the constructionEngineering contract.
20Marine SystemsNSPS under 1000 ton Ship Construction Contracts such as:Inshore Fisheries Science VesselHovercraftFisheries Research VesselRCMP Fast Patrol BoardPRV III’sRHIBS (DND and CCG)Vessel EngineeringEngine OverhaulSubmarine RescueLogistics ProcurementsMarine In-Service SupportMarine LogisticsShip Refits Contracts such as:Preserver RefitProtecteur RefitAthabaskan RefitOberon Disposal20
21Victoria In-Service Support Contract Competitive Contract signed in June 2008 with the Canadian Submarine Maintenance Group now Babcock Canada Inc. to support the four Upholder Class Submarines.VISSC received TB approval for $1.7B over 15 years, including 10 option years.VISSC has successfully established a submarine service capability in Canada250+ direct jobs have been created with an additional 293 Canadian companies that provide various levels of support to the prime contractor.HMCS CHICOUTIMI is undergoing the first refit under this contract and is on track for delivery to the Navy in December 2013.